“We
remain of the view that the core philosophy underlying MTD is the right one to
pursue, and that eventually taxpayers, agents and HMRC will see the benefit of
digital interaction with the tax system.

“If the
system is as effective as we all hope, individuals and businesses will not need
compulsion but will want to adopt it.”

However,
the Treasury’s decision to delay the start date for the self-employed gives the
taxman some “much needed time to concentrate on building the system successfully.”

“And to make it so attractive that businesses will actively want to sign up,”
Hubbard added. “For now though, businesses will have a choice as to the timing.
As a result, there will be a lot of accountants and small business owners who
will today be breathing a huge sigh of relief.”